September 24, 2013
NSR's 10th edition of the Government and
Military Satellite Communications (GMSC-10)
report, published projects the industry will
generate $5 billion in revenue growth by 2022
primarily from rising transponder and bandwidth
demand of UAVs and airborne manned missions. The
positive impact of HTS and MEO-HTS services for
mobility applications (maritime, aeronautical and
land-mobile) as well as comms-on-the-pause, fixed
VSATs and bulk leasing, will also play important
roles in the market growth.
Before a growth phase takes place however, there
will be a lull in the coming years, due to
government budget cuts and the hit satellite
communications will take from the withdrawal of
troops from Afghanistan and Iraq. Despite some
regional hotspots and the impending strategic shift
of the U.S. towards Asia that could drive demand,
NSR�s study points to a real dilemma that could
negatively impact market growth. �Governments are
weighing the fine balance between cost and
efficiency with the latter often taking a backseat
in times of uncertainty, states NSR Senior Analyst
and report author, Claude Rousseau. Furthermore, the
build-up of proprietary military capacity on top of
the incoming onslaught of cheaper commercial HTS and
MEO-HTS satellite supply will impact traditional
high revenue growth for FSS and MSS operators in the
coming decade.
There is still a clearly identified need for
commercial satellite communications to play an
integral part of governments future network
architectures, for mobility in particular, that will
translate into demand for FSS transponders, MSS and
HTS/MEO-HTS bandwidth said Rousseau. We except
fairly strong growth for aeronautical and UAV
platforms, but the crux of the matter for our
forecast resides in the industry addressing the
needs for ongoing requirements while demonstrating
that cost-effective solutions from new systems can
bring savings across the board.
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